VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 6, 2007) - Hawthorne Gold Corp. (TSX VENTURE:HGC) and Eureka Resources Inc. (TSX VENTURE:EUK) -
Hawthorne Gold Corp. ("Hawthorne") has entered into an option agreement ("Agreement"), subject to regulatory approval, to acquire a mineral claim from Bob Bourdon ("Bourdon"), that is located in the historic Cariboo Gold Mining District of central British Columbia. This property is located between the Hawthorne-optioned Frasergold Property owned by Eureka Resources Inc. ("Eureka") and the newly optioned Dajin Resources Inc. (TSX VENTURE:DJI) optioned property. The total ground position under option by Hawthorne is now 8,093 hectares or approximately 20,000 acres. The mineral claim optioned from Bourdon falls within a two kilometer 'Area-of-Interest' clause and is an expansion of the original optioned Frasergold Property.
Highlights of historic exploration on the Bourdon Eureka Peak claim include DDH 88-05: 8.17 meters averaging 2.49 grams gold/tonne and DDH 88-06: 1.25 meters grading 15.05 grams gold/tonne (1989 Rebagliati Geological Consulting Ltd. report titled: Summary Report - Eureka Peak Gold Prospect, for Sirius Resource Corporation). The author indicates that the mineralization remains open on strike and down dip.
The mineral claim is centered on Eureka Peak and the Eureka Peak syncline (see attached cross section and claim map). Two styles of gold mineralization are known within this portion of the syncline. Eureka Peak gold-sulphide mineralization is found closer to the core of the fold, near the base of volcanics that overlay the sediments. The Frasergold gold-quartz deposit is hosted within phyllitic sediments and is located on the east limb of the syncline. Both styles of gold mineralization fit within the Orogenic Gold model currently being applied to mineralization within the Cariboo Gold Belt. Deposits within the Orogenic Gold model range in size up to multi-million ounce deposits and include such noted examples as MacRaes (New Zealand) and Sukhoi Log (Russia). With the addition of this claim, Hawthorne has now acquired another zone of known gold mineralization.
Under the terms of the Agreement with Bourdon, Hawthorne can earn a 100% interest in the claim by paying $140,000 in cash and issuing 70,000 shares over three years, including $20,000 cash and 10,000 shares on regulatory approval. Bourdon will retain a 2% net smelter return of which half can be purchased by Hawthorne for payment of $1 million. Hawthorne is also obligated to issue 150,000 common shares to Bourdon if the property is subject to a positive feasibility study.
Ms. Sheri Burt, P.Geo, a Qualified Person under NI 43-101, has approved the technical content of this News Release.
About the Frasergold Option Agreement
Pursuant to an option agreement dated October 31, 2006 between Hawthorne and Eureka Resources, Hawthorne can earn a 51% interest in the Frasergold property by completing exploration expenditures totaling $3.5 million, completing a feasibilty study by April 30, 2010 and making cash payments totaling $175,000 before October 31, 2009. Hawthorne can earn a further 9% (for a total of 60%) by arranging financing for 70% of the estimated capital costs for production.
About Hawthorne Gold Corp.
Hawthorne Gold Corp. is a Canadian-based gold exploration and development company with key properties located in British Columbia, Canada. Hawthorne Gold is managed by well-respected mining leaders Richard Barclay and Michael Beley. Together with mining veteran Michael Redfearn, and a strong board of Directors from across the mining industry, the goal is to become another successful gold company through focused exploration initiatives, continued development of the Frasergold mineral deposit and potential acquisitions of other projects.
ON BEHALF OF HAWTHORNE GOLD CORP.
Richard J. Barclay, President & CEO
Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.
To view the maps accompanying this press release please click on the following link: http://www.ccnmatthews.com/docs/HGC0606.pdf
FOR FURTHER INFORMATION PLEASE CONTACT:
Hawthorne Gold Corp.
(604) 629-1505 or Toll Free: 1-888-629-1505
(604) 629-0923 (FAX)